2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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6 Months Ended |
Mar. 31, 2026 |
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| Accounting Policies [Abstract] |
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| Schedule of Summarizes the Composition of the Company Accrued Liabilities |
The following table summarizes the composition of the Company’s accrued liabilities on the Condensed Consolidated Balance Sheets indicated:
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($ in thousands) |
|
March 31,
2026 |
|
|
September 30,
2025 |
|
Indirect tax contingencies |
|
$ |
65,167 |
|
|
$ |
64,481 |
|
Accrued operating expenses |
|
|
16,243 |
|
|
|
30,562 |
|
Accrued payroll expenses |
|
|
11,370 |
|
|
|
15,530 |
|
Indirect tax accruals |
|
|
5,812 |
|
|
|
6,017 |
|
Other accrued liabilities |
|
|
2,939 |
|
|
|
954 |
|
Accrued liabilities |
|
$ |
101,531 |
|
|
$ |
117,544 |
|
|
| Schedule of Earnings Per Share Basic and Diluted |
Provided below is the (loss) income per share calculation for the three and six months ended March 31, 2026 and 2025:
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For the three months ended March 31, |
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For the six months ended March 31, |
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($ in thousands, except share and per share amounts) |
|
2026 |
|
|
2025 |
|
|
2026 |
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|
2025 |
|
Numerator |
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Net (loss) income attributable to common shareholders - Basic |
|
$ |
(408,343 |
) |
|
$ |
(138,792 |
) |
|
$ |
(787,054 |
) |
|
$ |
102,858 |
|
Non-cash interest expense on convertible notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
818 |
|
Net (loss) income attributable to common shareholders - Dilutive |
|
|
(408,343 |
) |
|
|
(138,792 |
) |
|
|
(787,054 |
) |
|
|
103,676 |
|
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|
Denominator |
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Weighted-average common shares outstanding - Basic |
|
|
267,827,913 |
|
|
|
280,853,882 |
|
|
|
274,726,414 |
|
|
|
282,722,198 |
|
Dilutive impact of stock options and other share-based awards |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
511,028 |
|
Dilutive impact of convertible notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,103,310 |
|
Weighted-average common shares outstanding - Dilutive |
|
|
267,827,913 |
|
|
|
280,853,882 |
|
|
|
274,726,414 |
|
|
|
308,336,536 |
|
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|
(Loss) income per common share attributable to common shareholders |
|
|
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|
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|
|
|
|
Basic |
|
$ |
(1.52 |
) |
|
$ |
(0.49 |
) |
|
$ |
(2.86 |
) |
|
$ |
0.36 |
|
Diluted |
|
$ |
(1.52 |
) |
|
$ |
(0.49 |
) |
|
$ |
(2.86 |
) |
|
$ |
0.34 |
|
|
| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The un-weighted number of shares excluded from diluted earnings per share for the three and six months ended March 31, 2026 and 2025 are noted in the table below. Such shares were excluded as their assumed conversion would have been antidilutive or, for preferred stock, because the change-in-control conversion contingency was not satisfied.
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For the three months ended March 31, |
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For the six months ended March 31, |
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|
2026 |
|
|
2025 |
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|
2026 |
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|
2025 |
|
Convertible notes |
|
|
103,941,450 |
|
|
|
43,930,770 |
|
|
|
103,941,450 |
|
|
|
— |
|
Series A preferred stock conversion |
|
|
5,250,000 |
|
|
|
5,250,000 |
|
|
|
5,250,000 |
|
|
|
5,250,000 |
|
Anti-dilutive warrants |
|
|
1,604,559 |
|
|
|
1,604,559 |
|
|
|
1,604,559 |
|
|
|
1,596,999 |
|
Anti-dilutive stock options |
|
|
1,992,759 |
|
|
|
2,403,954 |
|
|
|
1,992,759 |
|
|
|
1,805,151 |
|
Anti-dilutive restricted stock awards |
|
|
26,547,749 |
|
|
|
1,780,149 |
|
|
|
26,547,749 |
|
|
|
— |
|
Total anti-dilutive securities |
|
|
139,336,517 |
|
|
|
54,969,432 |
|
|
|
139,336,517 |
|
|
|
8,652,150 |
|
|
| Schedule of Financial Instruments |
The following table presents the Company’s assets and liabilities that are measured and recorded at fair value on the Company’s Condensed Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2026 and September 30, 2025:
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March 31, 2026 |
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($ in thousands) |
|
Amount |
|
|
Level 1 |
|
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Level 2 |
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|
Level 3 |
|
Assets: |
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|
Cash equivalents(1) |
|
$ |
7,916 |
|
|
$ |
7,916 |
|
|
$ |
— |
|
|
$ |
— |
|
Receivable from bitcoin collateral(2) |
|
|
111,940 |
|
|
|
— |
|
|
|
111,940 |
|
|
|
— |
|
Bitcoin |
|
|
813,221 |
|
|
|
813,221 |
|
|
|
— |
|
|
|
— |
|
Bitcoin derivative - Bitmain contracts |
|
|
1,283 |
|
|
|
— |
|
|
|
— |
|
|
|
1,283 |
|
DAM derivative assets |
|
|
216 |
|
|
|
— |
|
|
|
— |
|
|
|
216 |
|
Liabilities: |
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|
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|
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|
DAM derivative liabilities |
|
|
3,786 |
|
|
|
— |
|
|
|
— |
|
|
|
3,786 |
|
Interest rate swap derivative |
|
|
39 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
Warrant liabilities |
|
|
3 |
|
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|
— |
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|
3 |
|
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|
— |
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|
September 30, 2025 |
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|
($ in thousands) |
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
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Level 3 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents(1) |
|
$ |
32,992 |
|
|
$ |
32,992 |
|
|
$ |
— |
|
|
$ |
— |
|
Receivable from bitcoin collateral(2) |
|
|
294,648 |
|
|
|
— |
|
|
|
294,648 |
|
|
|
— |
|
Bitcoin |
|
|
1,189,443 |
|
|
|
1,189,443 |
|
|
|
— |
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|
— |
|
Bitcoin derivative - Bitmain contracts |
|
|
233 |
|
|
|
— |
|
|
|
— |
|
|
|
233 |
|
Liabilities: |
|
|
|
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|
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|
Interest rate swap derivative |
|
|
93 |
|
|
|
— |
|
|
|
93 |
|
|
|
— |
|
Warrant liabilities |
|
|
115 |
|
|
|
— |
|
|
|
115 |
|
|
|
— |
|
(1) Represents money market funds. (2) See Note 5 - Receivable from Bitcoin Collateral for more information.
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